In today’s stock of the day, let’s take a look at Autodesk, which is currently forming a classic descending triangle pattern.
This setup consists of a horizontal support, marked in yellow, and a dynamic downtrend line acting as resistance, marked in black. It’s a well-known bearish formation, especially when it appears within a broader downtrend.
At the moment, the price is sitting right in the middle of this structure. That usually means one thing: the market is waiting for a catalyst before committing to a direction.
So how to approach this?
If the price closes below the yellow horizontal support, that would confirm a breakout to the downside and generate a signal to sell. This would align with the natural tendency of this pattern.
On the other hand, if Autodesk manages to break above the black downtrend line, that would invalidate the bearish setup and give a signal to buy.
For now, it’s a waiting game. The structure is clear, and the next breakout should define the direction.